Our family got a big lesson when my Uncle had an emergency quintuple heart bypass surgery 2 days before their big 50th anniversary celebration. They had house & land outside Altanta worth over $1M -- and very little ready cash.

Everyone on this thread has completely forgotten about OTHER methods for dealing with critical or chronic illness that don't involve stock market arbitrage or cash out refinancing in the case of an emergency.

For example, one could purchase for $100,000 an Index Universal Life policy with an accelerated benefits rider. If a quintuple heart bypass surgery was required, the policy would pay 4 times--that's right 4 times--the initial investment to pull the entire family through such a crisis. It's no longer a matter of the hospital and the doctor getting paid while the patient drains his bank account or firesales his assets.

If not accessed for emergencies, the policy continues to grow--tax free--at stock market like returns.